Auction House Fees and Services
Auction houses charge fees to sellers and buyers. Seller fees are negotiable. Buyer fees are typically 15-20%. Fees cover the auctioneer’s services. In NSW, services cost up to $6,000. Good auctioneers may charge $1,000, some as little as $400. The buyer’s premium is an extra charge to the winning bid. To estimate a foreclosed home’s potential auction price, agents estimate 50-60% of market value.
When foreclosure completes, the lender’s losses often exceed the mortgage amount. Selling helps recover some losses, but there is usually a balance. Buying foreclosed can be good depending on price, listing time, condition, etc. Foreclosures listed soon after sale benefit buyers most.
Comparison: Auction Houses Vs. Government Auctions
Auction houses are private businesses focusing on niches like art, antiques, vehicles or real estate. Government auctions sell surplus, seized, abandoned or forfeited property. Understanding differences helps determine suitable auction methods.